I'm into this company for dividends rather than capital growth. The $20million contract is just one of many that needs to make their project pipeline.
IDL have managed to produce growth in 2009 as compared to the last 2 years. NPAT looks to be on track for around $55million, representing a P/E ratio of 2.8.
By any standards PE2.8 is cheap for a company exhibiting growth. In the past smaller mining services companies exhibited ratios around 5-10.
Other similar stocks are: HST, EHL, MAH.
Joel
IDL Price at posting:
54.0¢ Sentiment: LT Buy Disclosure: Held
